BEL share price: Defence PSU still has room to run; expert sees 20% upside, sets Rs 375 stop loss

Bharat Electronics Ltd (BEL) continues to find favour among market watchers even as broader market volatility keeps investors cautious, with one market expert Pradeep Halder, Founder of PHD Capital arguing that the defence PSU still has room to run and is not yet in an overvalued zone. The bullish view came in response to a query from an investor holding the stock at Rs 443, with the recommendation clearly tilted toward staying invested — and even considering fresh buying at current levels.

Fundamentals keep BEL in focus
The core of the bullish thesis rests on BEL’s financial profile and valuation comfort relative to the sector. The expert described the company as a “fundamental strong” play, highlighting its roughly Rs 2.99 lakh crore market capitalisation, profit-making status and relatively low debt burden.

He also pointed to BEL’s profit after tax of around Rs 6,140 crore, arguing that the company’s earnings strength supports the stock’s premium. In his assessment, while the defence theme has already seen strong investor interest, BEL still stands out because “fundamental are very storgon strong” and the stock is not yet stretched versus the broader industry.

Valuation gap versus industry
A key part of the argument is BEL’s valuation relative to peers. According to the expert, the industry is trading at a price-to-earnings multiple of about 82, while BEL itself is at around 48.6 times earnings. That gap, he suggested, leaves room for further upside without immediately pushing the stock into an overheated zone.

“Mujhe lagta hai ki abhi bhi overvalued zone mein nahi hai,” he said, reinforcing the view that BEL can still attract fresh money despite the sharp rerating seen across defence counters over the past year.

Technical resilience adds conviction
Beyond fundamentals, BEL’s price action during recent market swings has strengthened the positive outlook. The expert noted that despite heightened volatility, the stock did not break the Rs 385-380 band — a level he sees as an important marker of underlying strength.

That resilience, in his view, signals that buyers are continuing to defend the counter even when sentiment turns shaky elsewhere in the market. “Yeh apne aap mein ek strength dikhata hai ki BEL kitna zyada strong hai,” he said.

Targets, timeline and risk marker
For investors, the actionable takeaway was unambiguous: hold existing positions and consider adding on dips or even at current levels. The expert sees BEL moving to Rs 485 first and then to Rs 530, implying a potential gain of over 20% from current levels within a relatively short window of up to two quarters.

He also underlined BEL’s healthy order book as a supporting factor for the medium-term story. For risk management, he suggested maintaining a stop loss around Rs 375, giving investors a clear downside marker while staying aligned with the broader bullish trend.